1. Field of the Invention
This invention is in the field of computerized credit cards and systems for debiting and crediting financial amounts.
2. Description of the Prior Art
Many countries including European countries impose VAT (value added tax) on purchases of goods and services. Foreigners visiting the country imposing the VAT are exempt if the aggregate purchases do not exceed a predetermined amount. The procedure for collection of the VAT from foreigners, particularly tourists, is time consuming and a financial drain on both the foreigner, the retail establishment and the government. The computerized system disclosed herein circumvents many of the problems existing with the present VAT collection method.
Currently E.U. (European Union) countries impose a VAT of 14.89% of the gross purchase price on sales of goods:
Occurring in the E.U.; PA1 To non-E.U. residents; and PA1 Not shipped outside the E.U.
Typically, the non-E.U. resident must separately apply for a VAT refund, either in conjunction with and at the time of the purchase of the goods, or at a separate department maintained by the retailer for such purpose. Generally, the non-E.U. resident must prove that he/she is not an E.U. resident by presenting proof of foreign citizenship at the time the VAT refund application is made. These procedures impose an added personnel and time expense on the E.U. retailer, and require the non-E.U. resident to present proof of foreign citizenship at time of purchase, often by presenting himself/herself at a separate department of the retailer where VAT refund claim forms are processed.
In order to obtain formal VAT credit, the non-E.U. resident must submit the VAT voucher signed by the retailer documenting that the purchaser is a non-E.U. resident to the Customs Authority for certification. The purchased goods must also be available for inspection at the same time. When the form is authenticated by the Customs/Excise officer, the non-E.U. resident may present the form either at a cash refund desk or by mail. The refund may be in cash, or at the purchaser's election, by posted credit to a credit card account. In many cases, the traveler will simply forego obtaining a refund of the VAT due to the time and trouble or not accurately follow the instructions for refund thereby not receiving credit. The current refund process occurs typically at the departing airport where the pressure of international travel and arriving at the departure gate on time is great. In order to successfully receive a refund under the current system, the purchaser must first retrieve the VAT voucher from his or her luggage and then present the voucher to the customs authority at the airport. In many cases, the baggage has previously been checked in to the airline thereby preventing the presentment of the voucher to the customs authority. Even after the voucher has been presented and certified by the customs authority, it is still necessary to go to a separate office to receive the refund. Such procedures are intolerable to the typical tourist. The computerized system disclosed herein eliminates the necessity for visiting both the customs authority and the refund office since the VAT refund is simply posted to the credit card account at the time of purchase.